MIDF Research said it anticipates the project could help the operator of the technology park reduce reliance on external energy suppliers and conventional energy generation.
PETALING JAYA: Cypark Resources Bhd
is expected to be the main beneficiary to a RM4bil renewable energy project in Melaka.
Cypark, which has a 29% stake in the project, is part of a consortium with Melaka Corp (MCorp) and Jakel Capital that would explore and develop energy solutions for the German Technology Park in the state.
The aim is to manage the planning, generation and distribution of at least 1,000MW of renewable energy for the technology park in the next five to seven years.
The industrial park is designed to attract leading German technology and manufacturing companies and aims to be a hub of innovation and sustainable development in South-East Asia.
MIDF Research said it anticipates the project could help the operator of the technology park reduce reliance on external energy suppliers and conventional energy generation.
“We are also certain risks to such projects, which include high upfront cost of infrastructure set up and regulatory changes. The latter is the most significant, considering that German companies had to adhere to several regulations when operating abroad,” the research house said.
These include the Supply Chain Due Diligence Act, the Foreign Trade and Payments Act and the General Data Protection Regulation in Germany.
Despite that, the research house said it is optimistic about the project and the renewable-energy segment.
Cypark is a not rated by MIDF Research at present.
